Uh oh: Feds issue subpoenas in investigation of CoverOregon exchange

posted at 10:11 pm on May 20, 2014 by Mary Katharine Ham

The incompetence may not just be outrageous, but actually criminal:

The federal criminal investigation of Oregon’s health insurance exchange took a step into public view Tuesday when the U.S. Attorney’s office issued broad subpoenas seeking information from Cover Oregon and the Oregon Health Authority.

While the Federal Bureau of Investigation’s interest in the exchange debacle had been previously reported, the legal demands dated May 13 indicate things may have moved beyond a preliminary inquiry to a full-blown investigation.

The investigation, led by federal prosecutors and the FBI, is seeking documents, memos, and emails between the two state entities that oversaw the botched health exchange with U.S. authorities in charge of dispensing federal money for the project.

Oregon has spent $250 million and three years on an ambitious IT project that failed to produce a fully functional exchange. Instead, what was produced was bug-ridden and largely unfinished, documents show.

Previously, the entire crazy-expensive soap opera as told by HotAir. We (and some of this is federal/our money) are almost $500 million in on this thing, and not a daggone person enrolled. It is a testament to how incompetent the Obamacare roll-out truly has been that $500 million on one state’s exchange is basically a footnote in the broader nationwide failure.

Still no ObamaCare enrollments through Oregon’s exchange

Cover Oregon might finally be ready by December 16th, but probably not

Oh, boy: CoverOregon’s executive director taking a leave of absence

Cover Oregon’s chief tech official resigns; site has signed up exactly zero people

Cover Oregon: If you haven’t heard from us by Monday… you should probably look for alternate coverage

Video: CoverOregon has cost $200 million so far without any successful signups

Great moments in state exchange success: CO director put on leave after fraud indictment

Report: Oregon is about to give up on its ObamaCare exchange

Together, those four failed state ObamaCare exchanges are costing taxpayers at least $474 million


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…jail?

KOOLAID2 on May 20, 2014 at 10:13 PM

should lead to it but with O’s DOJ I doubt it.

CoffeeLover on May 20, 2014 at 10:15 PM

So let me see if I’m reading this correctly: Obama’s fed is investigating an arm of Obama’s organization on the state level. Isn’t this just throwing more bad money after bad?

Judge_Dredd on May 20, 2014 at 10:16 PM

$500 million in on this thing, and not a daggone person enrolled. It is a testament to how incompetent the Obamacare roll-out truly has been that $500 million on one state’s exchange is basically a footnote in the broader nationwide failure

…forget the question mark!…JAIL!

KOOLAID2 on May 20, 2014 at 10:17 PM

About dang time

But this is holder we are talking about

cmsinaz on May 20, 2014 at 10:20 PM

Finally. An actual scandal.

libfreeordie on May 19, 2014 at 3:48 PM

Not the first one Precious.

slickwillie2001 on May 20, 2014 at 10:23 PM

Investigate. Find little to nothing. Close investigation quietly. End of story.

KCB on May 20, 2014 at 10:26 PM

Yeah, but there is gay marriage in Oregon!
So we are a proud state!

Yeah, right, who is investigating who? Nothing will come of this.

ORconservative on May 20, 2014 at 10:27 PM

Hope the FBI digs deep. Probably a lot of Democratic snouts were wallowing in that money trough.

And HOW MUCH was ‘donated’ to the DNC by the prime and sub-contractors?

GarandFan on May 20, 2014 at 10:31 PM

Teapot Dome scandal. . and many, many more.

If only Obama had been briefed. He could have stopped all of it.

Joseph OHenry on May 20, 2014 at 10:31 PM

Dude, that was like 3 years ago!!

AppraisHer on May 20, 2014 at 10:35 PM

Can’t help myself.

annoyinglittletwerp on May 20, 2014 at 10:46 PM

Lead Investigator: “So! What happened, and how do we keep it quiet?”

EvilMonk on May 20, 2014 at 10:47 PM

Boy, is Obama gonna be mad when he reads about this in the papers on Friday!!!

DublOh7 on May 20, 2014 at 10:47 PM

Let’s try this again.

annoyinglittletwerp on May 20, 2014 at 10:48 PM

investigate. Find little to nothing. Close investigation quietly. End of story. KCB on May 20, 2014 at 10:26 PM

Yep. Unless a repub accidentally made a dollar off of it. Highly unlikely in OR.

wolly4321 on May 20, 2014 at 10:49 PM

Finally. An actual scandal.

libfreeordie on May 19, 2014 at 3:48 PM

Been under a rock for the last five years?

bigGwillie on May 20, 2014 at 10:50 PM

Great they have 49 other states to go….or 56 whoever is counting

jaywemm on May 20, 2014 at 11:04 PM

Ummm, they’re actually surprised that pirates were digging for treasure? Every consultative bandit within 100 miles of an exchange project was foaming at the mouth to get in on this easy action.

SteveInRTP on May 20, 2014 at 11:08 PM

Maybe the oceans kept rising and the water shorted out the computer.

COgirl on May 20, 2014 at 11:42 PM

And the guy in charge of this fiasco…Governor Khitzhaber…with the help of the local Press Whores pulls an Obama and claims he only learned of the scandalous and spectacular failure of Cover Oregon in the papers…

He should have been impeached for the High Crime and Misdemeanor of allowing the continous airing those inanely stupid Cover Oregon commercials on local TV…

glcinpdx on May 20, 2014 at 11:49 PM

Finally. An actual scandal.

libfreeordie on May 19, 2014 at 3:48 PM

Yeah, cause people dying like in Benghazi or Fast and Furious or the VA is like, you know, a fake scandal. This was only money.

talkingpoints on May 20, 2014 at 11:52 PM

You mean like, subpoena subpoenas, like for real, like?

Holder actually cited an existing law? WTF?!?

Boy, is Obama gonna be mad when he reads about this in the papers on Friday!!!

DublOh7 on May 21, 2014 at 1:24 AM

Any time the government spends millions of dollars and ends up with nothing, somebody should probably go to jail.

The fact that they usually don’t points up at least one reason why we have such bad government these days.

trigon on May 21, 2014 at 3:33 AM

Not a smidgen!

Oldnuke on May 21, 2014 at 7:16 AM

If Oracle was the prime contractor, it will depend whether Larry Ellison is a D or R. If a D then nothing much will happen, especially if they have gay rights employee benefits.

However, if he is a Republican, there will be a big fine payable to the DNC for smearing Obama’s signature piece of legislation.

I’m sure all the local people at the state level are democrat appointees and will also get a pass or pardon.

txdoc on May 21, 2014 at 7:19 AM

The investigation, led by federal prosecutors and the FBI, is seeking documents, memos, and emails between the two state entities…

Yea, they’ll get right back to you after their two-year taxpayer-funded sabbatical in the Caribbean. And after they purchase (with taxpayer funds, no doubt) a big box of wide-tip Sharpies.

Tsar of Earth on May 21, 2014 at 7:58 AM

Guess this is what happens when you give drugged up hippies power over life and death.

forest on May 21, 2014 at 8:09 AM

The incompetence may not just be outrageous, but actually criminal:

From the top down. Makes me wish for the cute scandals of the Warren G. Harding administration.

Seriously.

rbj on May 21, 2014 at 8:28 AM

A stunning case of the pot calling the kettle black…

Wyznowski on May 21, 2014 at 9:49 AM

They spent that much money on a website that, at least for the providers’ side, isn’t compatible at all with the current version of Internet Explorer (IE11), has to use ‘Compatiblility Mode’ for IE 10, and is designed to work with IE 8. IE 8 is the web browser that is supported by Windows XP, an unsupported operating system and therefore illegal for providers to use according to HIPAA interpretations.

Russ in OR on May 21, 2014 at 9:58 AM

If any major Democrat contributors are involved, the investigation will quietly go away.

s1im on May 21, 2014 at 12:29 PM

Let’s try this again.

annoyinglittletwerp on May 20, 2014 at 10:48 PM

Funny clip. The sad thing is, people are not as mad as they should be. It will only wake people up once it completely hits their wallets and their healthcare options and I’m not sure it will even then.

We live in a culture where you can never get truly angry about anything. Thats just not done, we have to “calm down” and let the “investigations” work.

oryguncon on May 21, 2014 at 12:52 PM

oryguncon on May 21, 2014 at 12:52 PM

My uber-lefty sister-in-law(A NURSE) lives in Portland. She loves Obama and believes that anyone who criticizes him is doing it out of racism. Because her husband(my husband’s youngest brother) is a wimpy republican, their sons have grown up to be just like mom. My nephew is a college seniors-and is a little elitist if their ever was one. They’re perfect for Portland.

annoyinglittletwerp on May 21, 2014 at 2:16 PM